SUMMARY
Understanding of Islamic banks from year to year began to increase. This can be seen from the number of banks that have implemented the concept of sharia, so that citizens of the majority Muslim community will find it easier if they deal with the savings-saving process and avoid the conventional system. This study aims to describe the development of Islamic financial institutions through Islamic banking in Indonesia. The method used is descriptive qualitative. Data in the form of words, sentences and percentages that show the development of Islamic banking. Data collection techniques use read and record. Data sources are in the form of documents that include books, journal articles, newspapers, and documents that support this research. Data analysis using interactive models. The results showed that economic development in Indonesia has been running quite well and has had a positive impact on society in general although, not all are flat in the community. However, in this case, it is still necessary to have the role of the government and various elements that are considered important enough to supervise and control the course of the economy in Indonesia. Then the development of Islamic Financial Institutions in Indonesia is quite promising, for example, many banks that used to only apply conventional concepts have now opened branches by applying the sharia concept and also the emergence of study programs on Islamic Economics such as Islamic Banking.